The News – Unauthorized Binary Options Brokers Challenge Regulators

Unauthorized brokers are challenging regulators by offering their services in countries that have not approved and licensed them. Regulators around the world are having a hard time keeping track of them all. In some cases even finding the unregulated brokers is not an easy task and dealing with the people behind the scam is almost impossible. Authorities have their hands tied; they can do little more than issue a warning against a company and hope that future clients will do their own research in order to avoid them. The problem is that warnings are often misdirected and reflect negatively on reputable and regulated brokers that are not even involved.

hr

While authorities struggle with the task of warning potential clients scam companies continue to operate. They use a number of tactics including false claims of regulation or by cloning the names of known and regulated brokers to camouflage their scheme. New victims are being dragged into these fake websites everyday by illegal methods that count as criminal offense in many jurisdictions. Email and telemarketing solicitation is the typical method of client acquisition used by the unlicensed companies. Usually, after the clients has already lost their investment in their previous account they get contacted to invest in another firm. They make the clients interested by offering them new ways of recuperating their losses by making them deposit more money in an unregistered platform.

Scam Brokers Are More Slippery Than Ever

Some companies have been found to operate several different brands and platforms in order to solicit more clients in selected regions. In Missouri, authorities have found overseas companies telling clients they are exempt from registration with regulators due to them not being located in the US. Other companies use fake addresses and register virtual mail addresses in London with the actual physical office somewhere hidden – making it hard for authorities to find. Still others take the scam one step further, falsely claiming they are regulated by CySec, FCA or other securities regulators in a bold faced lie.

Unauthorized and Unregistered Brokers Are A Tough Challenge

There is still no international regulator of binary options to keep worldwide traders safe. Even though regulators are doing their best to cope with all the new investing opportunities they are one step behind the scams pulled by shady binary options companies. For now, all authorities can do is to advise traders to check with a regulator before investing with a company. In conclusion, most of the due diligence must still be done by the clients themselves and if something seems too suspicious you are best to report it or stay away. I leave you with what Tony Hetherington wrote on thisismoney.co.uk about a scam broker named NRGbinary; “nobody should touch NRGbinary, not even with a bargepole dipped in disinfectant”.

Commenting Guidelines ThatSucks.com team encourages you to use our comments sections to share and discuss with other users, ask questions and express your mind. However, we do appreciate a high level of discussion; therefore, in order to maintain honest and gentle discourse, please keep the following criteria in mind when adding a comment:

Use Standard Writing Skills and Style. Mind your text and style.

Enrich and Respect the Conversion. We all want to hear what you have to say. Just don't take the freedom of speech away from us.

Avoid abusive language and personal attacks, directed either at the broker or the author.

Stay focused. Only post material that’s relevant.

Do Not SPAM or promote yourself illegally. Honesty speaks for itself. If you want our help, contact us.

Users caught spamming or abusing will be deleted from the site and prohibited from future registration at thatsucks.com and affiliates. We would also like to stress out that personal accusation against brokers or individuals without any proves or document to prove any illegal act might be ascribed as illegal act for itself and therefore attract legal measures. We recommend staying within the range of good taste and respectful language to avoid any unpleasantness.

ThatSucks.com will not take any responsibility for any loss or damage derived by accusations or negative comments made by random individuals. All Ip's are checked and marked for further inspection.

Thanks for Submitting!

Please allow us 24-72 hours to review your comment.

We reserve the right to decide which comment will be published.

For question regarding brokers – Please use our Forums.

For Detailed Complaints – Please use our Complaints system on homepage.

Please be noted that all information provided by ThatSucks.com are based on our experience and do not mean to offend or accuse any broker with illegal matters. The words Suck, Scam, etc are based on the fact that these articles are written in a satirical and exaggerated form and therefore sometimes disconnected from reality. All information should be revised closely by readers and to be judged privately by each person.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok